Complexity Economics (328-0-20)

Instructors

Eric Schulz

Meeting Info

University Hall 122: Mon, Wed 6:30PM - 7:50PM

Overview of class

This course considers some alternatives to the standard assumptions, with the goal of extending economics to provide better understanding and prediction. For good evolutionary reasons, we're not homo economicus, our rationality is bounded by biological constraints. We may not perfectly understand a continually changing economic environment. Markets may not be in equilibrium. We may face fundamental uncertainty (it may not be meaningfully possible to place probabilities on outcomes) in our decision-making. We'll consider three broad areas. 1) The nature of our bounded rationality and decision-making in the presence of fundamental uncertainty. 2) While psychology and behavioral economics have made truly valuable contributions by showing flaws of the rational model, neither provides a coherent foundation. The is a growing feeling that evolutionary economics, which considers how an economy may evolve in the presence of the factors listed above, may fill the void. Included in this section are the astonishing hockey stick of history and the economics of creative destruction. (Northwestern's Joel Mokyr was awarded a Nobel for work in this area.) We'll consider creativity and innovation. 3) Results and implications of a complex adaptive economy--a system that involves human behavior, institutions, technologies, as well as culture, and that is ceaselessly adapting and self-creating. Across the topics we'll cover, contributions have been made across disciplines and throughout the course where relevant, we'll consider work by psychologists, neuroscientists, and anthropologists to more fully understand our nature and behavior.

Registration Requirements

Econ 281, Econ 310-1, Econ 310-2

Teaching Method

Attendance at two lectures and a discussion section each week is expected.

Evaluation Method

Two exams, one quiz. Problem sets will be given. Class participation will count in borderline cases.

Class Materials (Required)

There is no required textbook but readings will be available.

Enrollment Requirements

Enrollment Requirements: Reserved for Economics Majors & Minors until the end of preregistration, after which time enrollment will be open to everyone who has taken the prerequisites. Pre-requisite: Students must have taken ECON 310-1 or MMSS 211-1 and ECON 281 or ECON 381-1 or MATH 386-1 or IEMS 304 or STAT 350 to successfully enroll in this course.

Associated Classes

DIS - Tech Institute Lecture Room 5: Thurs 5:00PM - 5:50PM